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Apple plans to roll out the Apple TV + movie and TV subscription service by November, as part of a campaign to achieve $ 50 billion in revenue by 2020.
The company will present a small selection of shows and then expand its catalog frequently over several months, said people familiar with the subject. A free trial is likely when Apple builds its library, said the people who asked not to be identified because the plans are not public.
The iPhone maker enters an increasingly crowded field, led by the pioneer of streaming Netflix and Amazon. In the coming months, Comcast's Walt Disney Co., AT & T and NBCUniversal will launch new offerings, all aimed at increasing numbers of viewers who cancel their cable TV subscriptions or watch their mobile devices.
With its first foray into video subscriptions, Apple is analyzing different publishing strategies for broadcasts. The company plans to offer the first three episodes of some programs, followed by weekly payments, officials said. Netflix tends to release entire seasons at the same time, while AT & T's HBO and Disney's Hulu often publish weekly episodes. Apple's service will be launched in more than 150 countries.
Apple TV + will be one of the top five digital subscription services in Apple's portfolio, with Apple Music, the next Apple Arcade gaming service, Apple News + subscriptions and iCloud storage. The company also generates recurring revenue through products such as AppleCare Extended Customer Service and its bank-managed iPhone upgrade program. It will likely start taking revenue from the Apple card, which began rolling out earlier this month.
A spokesman for Apple declined to comment.
Apple has not announced any price for Apple TV +, but weighs $ 9.99 a month, which would correspond to Apple Music and Apple News +. Netflix and Amazon Prime cost as little as $ 8.99, while Disney + plans to look for $ 6.99 when it creates its service in November.
The Financial Times reported Tuesday that Apple had set aside $ 6 billion for original series and films, without specifying where information came from. The budget for the first year of content was $ 1 billion, but has since grown, he said.
That's a lot less than Netflix should spend this year. Analysts predict that it will generate more than $ 14 billion worth of movies and TV shows.
Apple is embarking on services to generate additional revenue from its broad base of iPhone, iPad, Mac and Apple Watch users. Consumers have recently been slow to replace computer equipment due to rising prices, market saturation, economic difficulties and the lack of revolutionary new features.
The company could avoid a slowdown in revenue by getting users to subscribe to new services. Apple, based in Cupertino, California, could also potentially boost revenues by linking services to the iPhone upgrade program, which allows customers to update their new models each year through monthly payment plans.
The first series of Apple shows will include "The Morning Show", "Amazing Stories" by Steven Spielberg, "See" with Jason Momoa, "Truth Be Told" with Octavia Spencer and a documentary series on "extravagant houses" called " Home ยป.
On Monday, the company released the second trailer of "The Morning Show", starring Jennifer Aniston, Reese Witherspoon and Steve Carell.
The TV service will be part of the Apple TV application, installed on the company's devices, and will also be accessible from third-party products, including Roku and Amazon Fire TVs, as well as Samsung TVs.
In the third fiscal quarter, services accounted for a record 21% of Apple's sales, while the iPhone continued to dive below 50% of the total.
Analysts have suggested that Apple TV + could reach 100 million subscribers over the next five years, which would make it a major challenger for Netflix and Amazon.
The company is heavily committed to video, including about 300 million US dollars spread over two seasons of "The Morning Show," according to people close to the record.
-Bloomberg News
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